Ralph Lauren exceeds Q2 hopes

Ralph Lauren Corporation reported better-than-expected second quarter results for fiscal 2013.

Consolidated comparable store sales increased 5 percent in constant currency in the second quarter. Second quarter revenues were 1.9 billion dollars, led by retail segment growth. Second quarter operating income was 348 million dollars and operating income margin rose 30 basis points to 18.7 percent. Earnings per diluted share were 2.29 dollars in the second quarter.

Net income was 214 million dollars, or 2.29 dollars per diluted share, for the second quarter of fiscal 2013, compared to net income of 233 million dollars, or 2.46 dollars per diluted share, for the second quarter of fiscal 2012.

“I am proud of our better-than-expected second quarter and first half results,” said Roger Farah, President and Chief Operating Officer. “In the context of a more challenging operating environment, and on top of double-digit sales and profit gains in the prior two years, disciplined execution enabled us to strengthen the margin structure of our business once again. While we expect continued margin improvement in the back half of the year, macroeconomic conditions lead us to be incrementally more cautious on near-term customer demand trends worldwide. Notwithstanding these macroeconomic challenges, the desirability of the Ralph Lauren brand is undeniable and we are well positioned for the upcoming holiday season.”

Net revenues for the second quarter of fiscal 2013 were 1.9 billion dollars, 2 percent below the comparable period last year. Retail sales rose 5 percent to 901 million dollars from 861 million dollars in the second quarter last year. Consolidated comparable store sales rose 3 percent on a reported basis during the second quarter and increased 5 percent in constant currency.

The company ended the second quarter of fiscal 2013 with 385 directly operated stores, comprising 107 Ralph Lauren stores, 58 Club Monaco stores, 206 Polo factory stores and 14 Rugby stores.